MM 35 Transactional & Formational Leadership

Transactional leadership can be understood as a superordinate style of the leadership techniques MbO (M19) and MbE (M21). Its key feature is that the relationship between management and employees is characterized by jointly agreed goals and delegated tasks and areas of responsibility. In addition, the manager monitors results, rewards outstanding performance, and punishes poor performance. Motivation for work is based solely on the idea of ​​being assured of a certain reward for a certain performance. This is where the name comes from: the transaction of performance from the employee to management and the transaction of payment, recognition, and criticism from management to the employee.

Transformational leadership, on the other hand, attempts to convey a higher sense of purpose to employees, so that they are motivated to work beyond the transactional relationship of performance and reward. Management becomes a role model and driving force for progress toward a shared vision. What Burns observed in politics was translated into the management context by Bernard M. Bass. Transformational leadership enjoys great academic popularity, which is why its characteristics are formulated differently.

In management theory, considerations of transactional and transformational leadership form an important bridge between Kurt Lewin's cooperative leadership style (M31) and post-millennium concepts such as agile management (M26) and systemic management (M12). These classifications are currently particularly important in the context of the popular Multifactor Leadership Questionnaire (see M37).

In the context of:

Q: Q01, Q02, Q04, Q15, Q18

E: E01, E02, E07, E10

T: TT02, T03, T09, T12, T16